The Indian rupee nosedived 105 paise to mark its biggest single-session drop in over 20 months against the US currency on Wednesday amid concerns over surging Covid-19 cases in the country.
At the interbank foreign exchange, the Indian currency settled at 74.47 to the US dollar – marking its lowest level since November 13 last year. The rupee also logged its worst single-day fall since August 5, 2019. The local unit opened at 73.52 against the greenback and traded in the range of 73.52 to 74.50 during the session on Wednesday.
"The Indian rupee depreciated amid concern over rising Covid-19 cases in India and lockdown restriction in some states. Furthermore, Reserve bank of India kept its repo rate unchanged for the 5th consecutive policy meeting and maintained accommodative stance," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas. The central bank kept its key policy repo rate unchanged at 4 per cent, but warned that the recent surge in Covid-19 infections has created uncertainty over economic growth recovery. PTI